ETFs

In by Renae JeziorowskiLeave a Comment

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Renae Jeziorowski

I have been investing in ETFs over the last 2 years as I do not feel educated enough to invest in individual stocks.

However given the current selloffs I realised that I am unsure exactly how the value of an ETF works. Is the value dependant solely on the shares the ETF is made up from (so if those shares go down, the ETF price goes down) or is the ETF price also dependant on its popularity (supply and demand) irrespective of what is happening to the prices of the individual shares it is made up of?